Schwazze FY22 Revenue Grows 47% To $159.4M, What About Adjusted EBITDA?

Medicine Man Technologies Inc. operating as Schwazze, SHWZ SHWZ, announced financial results for the Q4 2022 and for the year ended December 31, 2022, revealing revenue of $159.4 million, an increase of 47% compared to $108.4 million in 2021.

Q4 2022 Financial Highlights

• Revenues of $40.1 million, an increase of 51% compared to $26.5 million in Q4 2021

• Gross profit of $23.0 million, an increase of 89% compared to Q4 2021

• Net loss of $27.3 million compared to net income of $12.8 million for Q4 2021

• Adjusted EBITDA of $13.3 million was 33% of revenue, compared to $7.5 million and 28% of revenue for Q4 2021

Full Year 2022 Financial Highlights

• Gross profit of $85.0 million, an increase of 72% compared to $49.4 million in 2021

• Gross profit margin rose as a percentage of revenue from 46% to 53%.

• Net loss of $18.5 million compared to net income of $14.5 million for 2021, driven by an impairment charge of $8.0 million, interest expense of $30.1 million, and loss on disposition of assets of $4.7 million

• Adjusted EBITDA of $52.0 million was 33% of revenue, compared to $32.2 million and 30% of revenue in 2021

"In 2022, Schwazze continued to execute its strategy to "go deep" in our operating states and build customer loyalty and share," stated Justin Dye, CEO of Schwazze. "To date, we have opened, acquired, or announced pending acquisitions of 45 dispensaries with five operating cultivation and two manufacturing facilities across Colorado and New Mexico. We believe our retail brands are really connecting with customers. Schwazze is well-positioned to play offense in this challenging environment. As market forces become more favorable, we believe Schwazze will emerge with a much stronger position which will reward shareholders. For now, we will keep executing our strategy and playbook."

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